Agencies Plan Frugal Spending

September 1, 1999|By JOHN KENNEDY and DAVID COX tallahassee bureau

TALLAHASSEE — State coffers aren't going to be as flush next year, so Gov. Jeb Bush is looking to hold the line on spending -- while still allowing for another round of corporate and individual tax cuts.

Bush's agency heads on Tuesday gave the Republican governor their budget proposals for next year, apparently following his mantra of ``keep it lean."

``We know we're not going to have the kind of money we had this year," said Donna Arduin, Bush's budget director. Arduin has said the administration is committed to tax cuts. But most likely, those cuts will fall short of the $1 billion in cuts that were part of this year's $48.9 billion budget.

One likely tax break is an extension of a one-year moratorium on unemployment compensation taxes paid by businesses.

The state Labor Department proposes slicing its $2.6 billion budget by 40 percent, with about $750 million of the savings coming from cutting the unemployment tax. Labor Secretary Mary Hooks said the state's jobless rate is the lowest in years.

State revenues are projected to be much tighter than this year, when the state's go-go economy, its settlement with cigarette makers and lower state contributions to an employee pension fund helped create $3 billion in new revenue.

Next year, only about $1 billion in new money is expected. Increasing demand for state services could absorb much of that unless agencies overhaul how they do business, officials said.

With that in mind, budget requests from agency heads were generally frugal.

Kathleen Kearney, secretary of the Department of Children & Families, is proposing a $340 million boost, or 9 percent increase, in her agency's budget. But about half of the new money is federal dollars that Florida continues to receive even as it reduces its welfare caseload. Kearney plans to spend $16.2 million to hire 326 new workers, including 192 child-protection caseworkers.

Michael Moore, head of the Corrections Department, is holding the bottom line on this year's spending, but acknowledged that an additional $1 million is earmarked for security measures and video cameras stemming from the July death of Frank Valdes.

Valdes, a Death Row prisoner, died after an altercation with guards at Florida State Prison.

Health Department Secretary Bob Brooks is proposing a new $10 million grant program that would allow communities to apply for state money to improve health services for minorities.